Put Kids on the Right Path with Money Lessons

From the time children drop
their first few coins into a piggy bank, they are ready to learn about
setting savings goals and making smart spending decisions. The experts
say the sooner parents start imparting these lessons, the more effective
they will be in helping children grow into financially responsible
young adults. The trick is to take advantage of teachable “money
moments” that happen every day – such as when you go to the bank or the
grocery store – to help children understand complex concepts in
kid-friendly terms.

“If children are included
in family financial discussions, such as planning for a fun vacation or
purchasing a highcost toy, then parents can begin to place daily
spending decisions in a context their child will understand,” says
Stuart Ritter, CFP, a family financial expert with T. Rowe Price, and
father of three. “Teaching children to set savings goals and make
decisions about money that align with those goals is much easier when
the discussion is concrete rather than abstract.”

A
complementary approach is to introduce children to games that teach
basic money lessons. One example is the game “The Great Piggy Bank
Adventure” at www. GreatPiggyBankAdventure. c o m . T . R o w e P r i c e
collaborated with Walt Disney Parks and Resorts Online to produce this
free online board game, which conveys basic financial concepts in a way
that is fun and easy for kids to understand.

To
extend the lessons from the game, parents can also download a free
“Journey to Your Dream Goal” activity book from www.
FamilyFinancialHub.com. Puzzles, games, and tricky challenges help guide
kids through the process of making smart financial decisions.

To get your child started with saving and money lessons, visit www. FamilyFinancialHub.com.